Guesthouse Aurora Review – Our One-Night Stay in Reykjavik

Looking for affordable accommodation in Reykjavik? In this Guesthouse Aurora Reykjavik review, I’m sharing our experience staying here for one night before starting our Iceland campervan adventure.

When we first arrived in Iceland, I decided we’d ease into our trip with a night in a guesthouse rather than collecting our campervan straight away.

We were only staying in Reykjavik for one night before beginning our 10-day drive around Iceland.

In hindsight, it might have been cheaper to pick up the campervan immediately and head to a campground. But after a long flight, having a proper bed and breakfast waiting for us wasn’t a bad idea either!

Iceland is notoriously expensive, and the Australian dollar doesn’t always help, so I was looking for somewhere comfortable, central and reasonably priced.

We ended up booking Guesthouse Aurora, a small guesthouse near Hallgrímskirkja in central Reykjavik.

Even at the budget end of the accommodation options, our room cost just over $300 AUD for one night.

Guesthouse Aurora offers rooms with private bathrooms, but we deliberately chose one of the cheapest options – a small double room with a shared bathroom.

Since we were really only going to sleep there, I couldn’t see the point in paying extra for an ensuite.

So, was Guesthouse Aurora worth the money?

Here’s what we thought, what the facilities were like, and whether I’d stay there again.

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Guesthouse Aurora at a Glance

Our experience
LocationFreyjugata 24, central Reykjavik
AccommodationBudget guesthouse
Room we bookedSmall double with shared bathroom
Other room optionsPrivate bathrooms available
Price we paidJust over $300 AUD
BreakfastIncluded
Airport transportFlybus to BSÍ or Bus Stop 8
Best featureExcellent central location
Main compromiseBasic facilities in our budget room
Would I stay again?Yes, for a short stay

My verdict: Guesthouse Aurora is a good choice for travellers who want somewhere warm, comfortable and central without paying for unnecessary extras. You can save money by choosing a room with shared facilities or pay more for a private bathroom.

It isn’t luxurious, but for our one-night stay, it did exactly what we needed.

Check current prices and availability at Guesthouse Aurora.

Who Should Stay at Guesthouse Aurora?

I think Guesthouse Aurora is particularly well suited to travellers who want a convenient place to sleep without spending a fortune.

It’s worth considering if you’re:

  • Arriving in Reykjavik late in the day and need somewhere for a night or two.
  • Collecting a campervan or rental car the following morning.
  • Travelling on a budget and happy to share bathroom facilities to save money.
  • Exploring Reykjavik without a car and want to stay within walking distance of the main sights.
  • Looking for a simple guesthouse rather than a full-service hotel.

For us, the location was a big advantage. We could arrive from the airport, walk to our accommodation and explore Reykjavik the following morning without needing transport.

If you’re staying longer, you might prefer one of the rooms with private facilities.

Getting to Guesthouse Aurora From Keflavik Airport

Most international visitors arrive at Keflavik Airport, around 50 kilometres from Reykjavik.

We took the Flybus into the city, which is a convenient option if you don’t already have a rental car.

The journey takes approximately 45 minutes to the BSÍ bus terminal, depending on traffic and weather.

Flybus departures are coordinated with arriving international flights, and tickets can be booked in advance.

You can book your Flybus airport transfer here.

From BSÍ, it’s approximately a 10-minute walk to Guesthouse Aurora.

We arrived in the early evening and found the walk straightforward, even with luggage.

If you’re travelling in winter, arriving in bad weather or carrying heavy bags, you might prefer to arrange a transfer closer to the guesthouse.

The Flybus hotel drop-off option, previously known as Flybus+, includes a connecting shuttle from BSÍ to designated stops around central Reykjavik.

For Guesthouse Aurora, choose Bus Stop 8 – Hallgrímskirkja, a few minutes’ walk away.

You won’t be dropped directly at the front door, but it saves you walking from the main terminal.

Checking In After Hours

We arrived after reception had closed, but checking in was surprisingly easy.

An envelope containing our keys and instructions had been left for us.

We also discovered that Guesthouse Aurora operates across several nearby buildings rather than everything being in one location.

Thankfully, our room was in the main building, so all we needed to do was head upstairs.

For guests staying in the other buildings, the instructions included a personalised map showing where to go.

I thought this was a simple but effective system, particularly when arriving in an unfamiliar city.

If you’re arriving late, the guesthouse asks you to contact them at least 48 hours beforehand to arrange self-check-in.

Standard check-in is from 2 pm, and check-out is by 11 am.

Our Room at Guesthouse Aurora

Our room was small, cosy and warm, which was exactly what we needed.

It wasn’t luxurious, but it was clean, comfortable and perfectly adequate for our short stay.

There wasn’t a huge amount of space, particularly once we had our luggage in the room, but we managed perfectly well.

Since we were only staying until the following morning, the size really wasn’t an issue.

I probably wouldn’t choose the same room for a week-long stay, but for one night it was fine.

If you’re planning to stay longer, or simply prefer a little more comfort, I’d recommend comparing the different room types.

Guesthouse Aurora offers double rooms and studio-style accommodation with private bathrooms, alongside cheaper rooms with shared facilities.

Compare rooms and prices at Guesthouse Aurora here.

The Shared Bathroom

On our floor, there was one bathroom shared between four guest rooms.

I’m not sure whether all the rooms were occupied, but we definitely weren’t the only people using it.

Despite that, we didn’t have any problems accessing the bathroom when we needed it.

The shower was lovely and hot, which was particularly welcome after travelling.

It was also our first introduction to the distinctive smell of Iceland’s geothermal hot water.

In some parts of Iceland, naturally heated water contains sulphur compounds that produce a noticeable rotten-egg smell.

It’s completely normal, although it can be a little surprising if you’re not expecting it!

One small inconvenience was that our bathroom didn’t have a hairdryer.

I later discovered there was one in the bathroom on the floor below. Had I noticed earlier, I would have used that one.

If a hairdryer is important to you, I’d suggest checking with the guesthouse rather than assuming there will be one in your bathroom.

Overall, the shared bathroom arrangement worked fine for our short stay.

For a longer visit, I’d probably pay extra for an ensuite, but we were happy with our choice.

A small bathroom with a wall-mounted basin, an open toilet, soap and paper towel dispensers, a mirror, and a shower area separated by a curtain. The floor and walls are covered in grey tiles.

Breakfast at Guesthouse Aurora

One of the things I appreciated about Guesthouse Aurora was that breakfast was included in our room rate.

Eating out in Iceland can be expensive, so having breakfast sorted before heading out for the day was a welcome bonus.

The breakfast was simple but perfectly adequate.

When we stayed, the selection included toast, cereal, fruit, boiled eggs, tea and coffee.

Nothing particularly fancy, but I certainly wasn’t expecting a luxury buffet at a budget guesthouse.

The guesthouse currently advertises a continental breakfast with bread, spreads, cheese, ham, eggs, cereal, yoghurt and drinks. The selection may vary.

Breakfast is served in the main building, so guests staying in the neighbouring buildings need to walk over.

The published breakfast hours are:

  • June to August: 7 am to 10 am
  • Other months: 7.30 am to 10 am

There’s also a communal kitchen where guests can prepare simple meals, which could be useful if you’re staying longer and trying to keep food costs down.

For us, having breakfast included added to the value of our stay.

Leaving Our Luggage After Check-Out

Because we weren’t collecting our campervan until later in the day, we wanted to explore Reykjavik without carrying our luggage around.

Thankfully, Guesthouse Aurora offers free luggage storage between 7.30 am and 6 pm.

When we stayed, the designated luggage storage area was actually the dining room.

It wasn’t locked, but other guests had left their bags there too, and we were happy to do the same.

I wouldn’t recommend leaving passports, money or valuables in an unsecured area, though.

The guesthouse notes that it cannot accept responsibility for lost or damaged belongings.

For us, the luggage storage was extremely useful. It meant we could make the most of our limited time in Reykjavik without dragging our bags around.

Guesthouse Aurora Location

For me, the best thing about Guesthouse Aurora is its location.

The guesthouse is on Freyjugata, a quiet street close to Hallgrímskirkja, one of Reykjavik’s most recognisable landmarks.

From the guesthouse, you can walk to:

  • Hallgrímskirkja – approximately 3 minutes
  • Bus Stop 8 – approximately 3 minutes
  • Laugavegur, Reykjavik’s main shopping street – approximately 5 minutes
  • BSÍ bus terminal – approximately 10 minutes
  • Sundhöllin public swimming pool – approximately 5-10 minutes

For anyone visiting Reykjavik without a car, this is an excellent location.

We could explore the city before collecting our campervan without spending extra money on taxis or public transport.

There are also plenty of restaurants, cafés and shops within walking distance.

Although the guesthouse is central, it’s away from some of the busiest streets, which is another advantage if you’re looking for somewhere relatively quiet.

A row of colourful houses, including green, blue, yellow, and pink, lines a sloped street. A no parking sign is visible, and the sky is partly cloudy.

What You Should Know Before Booking Guesthouse Aurora

There are a few practical things worth knowing before booking.

  • Shared and private bathrooms: We chose a cheaper room with shared facilities, but ensuite rooms are available.
  • Several buildings: Your room may be in a neighbouring building rather than the main guesthouse.
  • Stairs: Our room was upstairs, so we had to carry our luggage. If accessibility is important, confirm room access before booking.
  • Late check-in: Contact the guesthouse in advance to arrange self-check-in if you’re arriving after reception hours.
  • Luggage storage: Free during advertised hours, although the dining room used during our stay wasn’t locked.
  • Parking: The guesthouse doesn’t have private parking. Street parking is available nearby, but check the current restrictions and charges.
  • Free Wi-Fi: Available in rooms and communal areas.

None of these would stop me staying here again, but they’re worth knowing before you arrive.

Alternatives to Guesthouse Aurora

If Guesthouse Aurora doesn’t suit your budget or travel plans, there are a few other options worth considering.

Reykjavik Eco Campsite

If you’re travelling with a campervan or tent, Reykjavik Eco Campsite is worth considering.

We actually stayed here later in our Iceland road trip, so I can recommend it from personal experience.

It’s located in Laugardalur, approximately two kilometres from the city centre, beside the Laugardalslaug geothermal swimming pool.

The campsite is open year-round, although tent camping is seasonal. During winter, only the area designated for motorhomes and campervans remains open.

Depending on your travel plans, camping could work out considerably cheaper than booking a guesthouse room.

Of course, you’ll need your own campervan or camping equipment.

You can read about this campsite and the others we used in my guide to Iceland campgrounds.

Dalur HI Hostel

Right beside Reykjavik Eco Campsite is Dalur HI Hostel.

The hostel offers private rooms and shared dormitories, making it worth considering if you’re travelling on a budget but don’t have a campervan.

When we stayed at the campsite later in our trip, we popped into the hostel for a look.

We didn’t stay overnight, but it looked really good, and I thought it seemed like a great option for budget travellers.

There are communal kitchens, a café and other shared facilities, which could be particularly useful for a longer stay.

It’s not as central as Guesthouse Aurora, but public transport is available nearby.

Other Reykjavik Accommodation Options

If you’d prefer to stay closer to the city centre, you could also consider:

  • City Guesthouse – Another simple accommodation option to compare.
  • Center Hotels Plaza – A more traditional hotel in a central location, worth considering if you’d prefer a few extra comforts.

Accommodation prices in Reykjavik vary considerably depending on the season, so it’s worth comparing your options before deciding.

Is Guesthouse Aurora Worth It?

For our one-night stay, I think Guesthouse Aurora was a good choice.

Was it cheap? Not really, at least not by Australian standards.

Paying more than $300 AUD for a small room with a shared bathroom certainly isn’t what I’d usually consider budget accommodation.

But Iceland is expensive, particularly during the peak travel season, and finding somewhere affordable in a central location isn’t always easy.

What we got was a clean, comfortable room, breakfast included and an excellent location.

We could easily get there from the airport, explore Reykjavik on foot and leave our luggage while we waited to collect our campervan.

Those practical advantages made it a good fit for our plans.

For a longer stay, I’d probably choose one of the rooms with a private bathroom and a little more space.

But for a short stopover, I’d happily stay again.

If you’re looking for a simple, well-located guesthouse in Reykjavik and don’t need luxury, Guesthouse Aurora is definitely worth considering.

Check the latest Guesthouse Aurora prices and availability here.

Planning Your Iceland Trip?

If you’re planning to explore more of Iceland, these articles might also help:

For us, Guesthouse Aurora was a comfortable place to spend our first night in Iceland before the real adventure began.

And while I might do things differently next time and pick up the campervan straight away, I certainly don’t regret starting our trip here.

TRAVEL PLANNING ESSENTIALS

Flights – Book direct with the airline, always.

Book accommodation – My go to is Booking.com

Hire a rental car – DiscoverCars.com is where I search many car rental companies in one place

Get travel insurance – I use CoverMore for my insurance.

Pick up an eSIM – My eSIM of choice is Airalo

Book activities, tours & attractions – I use a few different websites for this. Viator, Get Your Guide and Klook are my first options.

Stay safe with a VPN – I use NordVPN to keep me safe online

Manage your money – I use Wise and ING (Australia) for my travel accounts.

Josie Kelsh

Josie will help you to plan your next trip filled with bucket list experiences balanced with budget travel. She discovered travel in her late thirties, but since then has travelled extensively, visiting more than 60 countries and taking an adult gap year. She is now based in Australia and loves sharing all she has learned about travelling on a budget but with the added comforts a Gen Xer requires.